Cleanliness and sanitation are the cornerstones of running a catering
company. Whenever foodborne illness enters the picture, it’s bad for your
bottom line. One catering business based out of Los Angeles International
Airport is learning this lesson the hard way. Earlier this month, American
Airlines
suspended its use of Gate Gourmet
due to listeria found in its floor drain. While no listeria was found on
food-preparation surfaces, the airlines did not want to take any risks.

Luckily, there’s been no evidence of passengers getting sick with listeria on flights as a result. But what happens if your catering company
is responsible for an outbreak of foodborne illness? To start, you’ll want
catering business insurance
on your side in case people sue your business for negligence. It’s also
imperative to have a plan in place so you can spring into action and
correct the issue. This way, your catering organization has a shot at
overcoming the incident and regain consumer trust.

Initially, American Airlines was the only one to suspend service from Gate
Gourmet. But more recently, Delta Air Lines and Virgin Australia joined
suit. According to Delta, the kitchen complies with regulations at the
local and federal level. But they decided to
stop serving its food
“out of an abundance of caution for the health and safety of our
customers.”

The Centers for Disease Control (CDC) reports about
1,600 people contract listeriosis
annually, and 260 die as a result. It can be especially harmful for people
with weakened immune systems. It’s just one of a few bacterial infections
that can result from eating contaminated food.

Catering companies have a responsibility to their clients and all who eat
their food to practice stringent food safety. Not only is an outbreak of
foodborne illness after your event damaging to your reputation, but it
seriously endangers people. Authorities may even pull your operating
license if your company is definitively linked to an outbreak.

For example, one caterer in Alabama lost his license after
two incidents
involving E. coli and salmonella. First, a luncheon in 2014 sickened 19
people—including one death. Then in late 2016, the company catered a
wedding to disastrous results. Two-thirds of guests became ill, and 22 had
cases serious enough to seek hospitalization.

The assistant state health inspector in this case reminded people to make
sure caterers they hire have a health department permit. Of course, if
you’re the one running the catering company, it’s up to you to secure
licensure and permits. You’ll also need to comply with any and all health
codes—plus use common-sense best practices throughout every step.

If a client does sue your company due to a foodborne illness outbreak,
catering business insurance can mitigate financial damages. General
liability insurance—more specifically, product liability coverage—covers
financial fallout from accidental harm to customers.